OLD MACHINERY SALE
This query is : Resolved
17 January 2026
SIR,
WE HAVE SOLD SOME OLD MACHINERIES ON PAYMENT OF GST ON TRANSACTIONAL VALUE. NOW THE PROBLEM IS THAT IN THE ACCOUNTS A PROFIT[AS PER INVCOME TAX] IS SHOWING AGAINST THE ABOVE SALE. MY QUESTION IS WHETHER WE HAVE TO PAY GST ON THIS PROFIT ALSO.
PLEASE ADVISE.
REGARDS
WE HAVE SOLD SOME OLD MACHINERIES ON PAYMENT OF GST ON TRANSACTIONAL VALUE. NOW THE PROBLEM IS THAT IN THE ACCOUNTS A PROFIT[AS PER INVCOME TAX] IS SHOWING AGAINST THE ABOVE SALE. MY QUESTION IS WHETHER WE HAVE TO PAY GST ON THIS PROFIT ALSO.
PLEASE ADVISE.
REGARDS
17 January 2026
No. Under GST law, tax is primarily levied on the transaction value (the actual price paid or payable), not on the profit shown in your books.
Income tax profit, calculated after depreciation on the machinery's written-down value (WDV), differs from GST's transaction value basis and does not trigger extra GST liability. GST focuses solely on the sale consideration received, not on taxable income or gains under IT Act.
Income tax profit, calculated after depreciation on the machinery's written-down value (WDV), differs from GST's transaction value basis and does not trigger extra GST liability. GST focuses solely on the sale consideration received, not on taxable income or gains under IT Act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Reporting of STCG on Property in ITR
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Not able to file ITR
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
